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Kirtan

Kirtan A Shah  | Answer  |Ask -

MF Expert, Financial Planner - Answered on Jul 03, 2023

Kirtan A Shah is a certified financial planner and managing director, private wealth, at Credence Family Office.
He is also a Certified International Wealth Manager and Financial Engineering and Risk Manager.
Shah is the co-author of Financial Service Management and Financial Market Operations, which are used as reference books for Mumbai University.
He is frequently seen on CNBC, Zee Business, ET NOW & BQ Prime as an expert guest.... more
Meva Question by Meva on Jul 03, 2023Hindi
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I want to know safe way to multiply my life savings (around 70 Lakhs) lying in the NRI Bank FD currently at 7% interest. I already own a house & have no pending loans. I dont have a DMAT account & have no knowledge of Stocks & Equity.

Ans: Because of your background I would suggest you stick to doing Mutual Fund investing. Start with moving 20 lakhs first to a debt funds & do weekly STP from debt to equity. Invest 10L in Kotak Liquid & do STP to Kotak India Opportunity & 10 lakhs to ICICI Liquid & do STP to ICICI Value Discovery Fund
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2024

Money
I have 50 Lacs in fd. I am saving 1.7lpm how to invest effectively to generate money. I am 26 year old now.
Ans: Let’s break down your investment strategy step-by-step. You have Rs 50 lakhs in a fixed deposit, and you save Rs 1.7 lakhs per month. That's an amazing start at 26 years old. Your commitment to saving and investing wisely will help you build a strong financial future. Let’s dive into how you can invest this money effectively.

Assessing Your Current Situation
First, it’s important to understand where you stand financially. You have a substantial amount saved in a fixed deposit and a healthy monthly savings rate. This shows you have a strong foundation. But fixed deposits offer low returns compared to other investment options.

Understanding Investment Goals
Before diving into specific investments, let’s define your goals. At 26, you likely have long-term goals such as retirement, buying a home, or starting a business. Identifying these goals will guide your investment choices. Here’s a breakdown of common goals:

Retirement: Aim to build a corpus that will support you post-retirement.
Buying a Home: Plan for a down payment and home loan repayment.
Children’s Education: If you plan to have children, consider their future education expenses.
Travel and Lifestyle: Fund future travel and lifestyle aspirations.
Diversifying Your Investments
Diversification is crucial. It means spreading your investments across different assets to minimize risk. Here’s a diversified investment plan tailored for you:

Mutual Funds
Mutual funds are excellent for long-term growth. They offer diversification and professional management. Here’s how you can allocate your savings in mutual funds:

Equity Mutual Funds: These are ideal for long-term growth. They invest in stocks and have the potential for high returns. They are divided into various categories:

Large Cap Funds: Invest in large, well-established companies.
Mid Cap Funds: Invest in mid-sized companies with high growth potential.
Small Cap Funds: Invest in smaller companies with high growth potential but higher risk.
Flexi Cap Funds: Invest in a mix of large, mid, and small cap stocks.
Debt Mutual Funds: These funds invest in bonds and other debt securities. They are less risky compared to equity funds and provide steady returns.

Hybrid Funds: These funds invest in a mix of equity and debt. They balance the risk and return.

Advantages of Mutual Funds
Diversification: Mutual funds invest in a variety of securities, reducing risk.
Professional Management: Managed by experienced fund managers.
Liquidity: Easy to buy and sell.
Compounding: Reinvested returns generate more returns over time.
Risks of Mutual Funds
Market Risk: Equity funds are subject to market fluctuations.
Credit Risk: Debt funds carry the risk of default by issuers.
Interest Rate Risk: Changes in interest rates affect debt fund returns.
Systematic Investment Plan (SIP)
A SIP allows you to invest a fixed amount regularly in mutual funds. It’s a disciplined way to invest and averages out the cost of investment. Considering your monthly savings, you can allocate Rs 1.7 lakhs across different SIPs:

Equity Funds: Allocate a significant portion here for long-term growth.
Debt Funds: Allocate a smaller portion for stability.
Hybrid Funds: Balance the rest between equity and debt.
Direct vs. Regular Mutual Funds
You might consider direct funds, but they have disadvantages. Direct funds require you to choose and manage funds yourself. This can be challenging without expertise. Investing through a Mutual Fund Distributor (MFD) with a Certified Financial Planner (CFP) credential has benefits:

Expert Guidance: CFPs provide personalized advice.
Regular Monitoring: Your portfolio is regularly reviewed and rebalanced.
Convenience: CFPs handle paperwork and transactions.
Avoiding Index Funds
Index funds track a market index and offer lower fees but also lower returns. Actively managed funds, on the other hand, aim to outperform the market through skilled management. Here’s why actively managed funds might be better:

Potential for Higher Returns: Fund managers can capitalize on market opportunities.
Flexibility: Managers can adjust the portfolio in response to market conditions.
Stocks
Investing in individual stocks can be rewarding but also risky. Given your age, you can allocate a portion of your portfolio to stocks for higher returns. However, stock picking requires research and understanding of the market.

Public Provident Fund (PPF)
PPF is a long-term savings scheme with tax benefits. It’s a safe investment with decent returns. You can allocate a portion of your savings here for stability and tax benefits.

National Pension System (NPS)
NPS is designed for retirement savings. It offers tax benefits and a mix of equity and debt exposure. It’s a good option for long-term retirement planning.

Gold
Gold is a good hedge against inflation. You can invest in gold through Sovereign Gold Bonds (SGB) or gold mutual funds. It’s a safe investment but should be a smaller part of your portfolio.

Emergency Fund
Maintain an emergency fund equal to 6-12 months of your expenses. This fund should be easily accessible and kept in a savings account or liquid fund.

Insurance
Ensure you have adequate life and health insurance. This protects you and your family from unforeseen events.

Reviewing and Rebalancing
Regularly review your portfolio. Rebalance it based on market conditions and your goals. This ensures your investments stay aligned with your risk tolerance and objectives.

Long-Term Perspective
Investing is a long-term game. Be patient and avoid reacting to short-term market fluctuations. Stick to your plan and keep investing regularly.

Final Insights
You’re on a great path with your savings and financial discipline. By diversifying your investments and staying focused on your goals, you can build a substantial corpus over time. Remember, investing is not about timing the market but time in the market. Consistent and disciplined investing will yield the best results.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2024

Asked by Anonymous - Jul 02, 2024Hindi
Money
Im 33 year old women with 2 kids, one is around 3 year old , my daughter and my son is 3 months old. I have savings around 9 lakhs and i want to double the same in next 5 years to get total of savings 20 lakhs .pls suggest me how should i go about it . My net salary is around 60k and expenses around 20 k
Ans: First, let me appreciate your clarity and determination. Doubling your savings of Rs 9 lakhs in five years is a focused goal. Achieving this requires a strategic and disciplined approach.

Evaluating Your Current Financial Position
Your net salary is Rs 60,000 per month, with expenses around Rs 20,000. This leaves you with a surplus of Rs 40,000 each month. You have Rs 9 lakhs in savings. We need to deploy these savings wisely and also utilize your monthly surplus effectively.

Investment Options to Double Your Savings
Mutual Funds
Investing in mutual funds can offer good returns over five years.

Benefits of Actively Managed Funds:

Professional Management: Fund managers adjust portfolios based on market conditions.

Diversification: These funds spread investments across various sectors, reducing risk.

Systematic Investment Plan (SIP)
A SIP allows you to invest a fixed amount monthly in mutual funds. This helps in averaging costs and reducing market volatility impact.

Advantages of SIP:

Rupee Cost Averaging: Buys more units when prices are low and fewer when prices are high.

Discipline: Encourages regular saving and investing habits.

Creating an Investment Strategy
Lump Sum Investment:

Invest your Rs 9 lakhs savings in a diversified portfolio of mutual funds.

Monthly SIPs:

Allocate a portion of your Rs 40,000 monthly surplus into SIPs. For example, investing Rs 30,000 monthly in mutual funds can yield significant returns over five years.

Building a Diversified Portfolio
A well-diversified portfolio can help in achieving your financial goals.

Equity Mutual Funds
These funds invest in stocks and have the potential to deliver high returns.

Benefits:

High Growth Potential: Equities generally offer higher returns compared to other asset classes.

Inflation Hedge: Equity investments can outpace inflation.

Debt Mutual Funds
These funds invest in fixed-income securities like bonds.

Benefits:

Stability: Lower risk compared to equity funds.

Regular Income: Suitable for conservative investors looking for steady returns.

Balancing Risk and Return
Investing in equity mutual funds offers higher returns but comes with higher risk. Debt mutual funds are more stable but offer lower returns. A balanced approach is to invest in both, creating a mix that aligns with your risk tolerance and financial goals.

Avoiding Common Pitfalls
Avoiding Index Funds
Index funds mirror market indices. They may not outperform the market.

Disadvantages:

Lack of Flexibility: No active management to capitalize on market opportunities.

Market Risk: Entirely dependent on market performance.

Actively Managed Funds:

Offer the expertise of fund managers who adjust portfolios for better returns.

Importance of Regular Funds
Avoiding Direct Funds
Direct funds require investors to manage their investments.

Disadvantages:

Complexity: Requires deep market knowledge.

Time-Consuming: Continuous monitoring and adjustments needed.

Benefits of Regular Funds:

Managed by professionals, offering better potential for growth.

Emergency Fund
It's crucial to maintain an emergency fund. This ensures financial stability during unforeseen circumstances.

Recommendation:

Keep aside Rs 1-2 lakhs as an emergency fund, invested in liquid or ultra-short-term funds for easy access.

Insurance Coverage
Ensure you have adequate life and health insurance.

Life Insurance:

Adequate cover ensures financial security for your family.

Health Insurance:

Protects against medical emergencies and high healthcare costs.

Financial Discipline
Sticking to your investment plan requires discipline.

Regular Review:

Monitor your investments periodically to ensure they are on track.

Avoid Emotional Decisions:

Stay invested during market fluctuations to reap long-term benefits.

Importance of Certified Financial Planner (CFP)
A CFP can provide personalized advice tailored to your financial situation.

Benefits:

Expert Guidance: Professional advice on investment strategies.

Comprehensive Planning: Covers all aspects of financial planning, ensuring holistic growth.

Long-Term Financial Planning
While doubling your savings in five years is a short-term goal, consider long-term planning as well.

Retirement Planning:

Ensure you are saving adequately for a comfortable retirement.

Child’s Education:

Plan for your children's education expenses early.

Final Insights
Doubling your savings in five years is achievable with a strategic and disciplined approach. Invest your Rs 9 lakhs in a mix of equity and debt mutual funds. Utilize your Rs 40,000 monthly surplus through SIPs. Maintain an emergency fund and ensure adequate insurance coverage.

Regularly review your investments and avoid emotional decisions. Seek guidance from a Certified Financial Planner to ensure your financial plans are on track.

With a balanced approach and disciplined investing, you can achieve your financial goals and secure a bright future for your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2025

Asked by Anonymous - May 19, 2025
Money
I'm a fresher who currently got placed into an NBFC for 25k salary in hand. How can I multiply this through investments and savings. Please suggest me some. Thank you in advance
Ans: Absolutely delighted to hear that you’ve landed a job. Your first step is a big one. Starting at Rs. 25,000 in hand, you’re not just earning—you’re building a future. Let’s break this down into clear action steps. My aim is to guide you like a Certified Financial Planner would, with a 360-degree plan for savings and smart investments.

I’ll help you understand what to do with your income, how to manage your spending, and how to multiply your savings over time.

Let’s begin with the most important areas.

Understand Your Cash Flow
First, track where every rupee goes.

Use a simple notebook or a mobile app.

Classify expenses: needs, wants, and savings.

Always aim to save before you spend.

Try to save 30% of your income each month.

That means at least Rs. 7,500 should be saved.

Build Your Emergency Fund
Start a separate bank savings account.

Keep Rs. 15,000 to Rs. 30,000 for emergencies.

This is not for shopping or vacation.

Only use it for medical or job-related problems.

Add a fixed amount monthly until you reach your goal.

Get Health Insurance Immediately
Your employer may offer one, but it is not enough.

Buy a personal health cover worth Rs. 3 lakh to Rs. 5 lakh.

Premiums are low for your age.

It protects your savings during illness.

Always disclose everything honestly while applying.

Term Insurance is Not Urgent Yet
You are single and just starting.

So, no need for term insurance now.

Take it only when you have dependents.

Focus instead on building assets and savings.

Automate Your Savings Process
Open a separate savings bank account for investments.

Set auto-transfer every month after salary credit.

This creates financial discipline automatically.

Don’t mix this with your spending account.

Treat savings as your monthly bill.

Start SIPs in Actively Managed Mutual Funds
Choose regular plans via a Certified Financial Planner.

They guide you with experience and research.

Don’t go for direct funds without guidance.

Direct funds need time, study, and ongoing monitoring.

Regular plans give you ongoing personalised support.

A CFP and MFD can help with fund switching also.

Benefits of Actively Managed Mutual Funds
Fund managers take decisions after market study.

Better for new investors like you.

Helps avoid sudden losses due to inexperience.

Higher chances of outperformance in long term.

Active funds adapt to market changes quickly.

Stay Away From Index Funds
Index funds follow market, no fund manager involved.

In bad markets, they also fall badly.

No one to protect or shift to safer assets.

No flexibility in difficult times.

Active funds manage risk better than index funds.

Choose SIPs with Proper Goal-Setting
Don't invest just for returns.

Invest with a goal in mind.

Examples: buy laptop, travel, marriage, house fund.

Assign timelines for each goal.

Choose funds based on time horizon and risk level.

Ideal Portfolio Mix for You
Equity mutual funds: Long-term wealth creation.

Hybrid mutual funds: Balance between growth and safety.

Recurring deposit or FD: For short-term needs.

Keep 2 or 3 funds only. Not more.

Don’t invest in random funds from friends or apps.

Avoid These Investment Mistakes
Don’t buy insurance for investment.

Don’t invest in LIC endowment or ULIPs.

They give low return and high lock-in.

No flexibility, no transparency.

Avoid chit funds and schemes from unknown sources.

Regularly Review Your Progress
Every 6 months, check your investments.

See if your savings rate is increasing.

Track how much emergency fund you have built.

Check if goals are getting closer.

A CFP can help you monitor and correct your path.

Build Skills to Increase Income
Savings alone won’t create wealth fast.

Improve your career skills also.

Take affordable online courses.

Ask for projects at work, build a reputation.

Better pay will give you higher savings later.

Budgeting Tips That Actually Work
Follow 50-30-20 rule: 50% needs, 30% wants, 20% savings.

For now, you may need to reverse it: 50% savings.

Use UPI apps for expense control alerts.

Don’t keep too much cash in hand.

Withdraw once a week, not daily.

Social Media Influencers are Not Financial Planners
Don’t follow random advice online.

Their needs are not your needs.

Your plan should match your goals, not theirs.

Stick to your savings plan strictly.

Professional advice is always better.

Avoid Loan Traps at Early Stage
Don’t take EMI cards or credit cards yet.

Start with a debit card linked to your bank.

Avoid monthly subscriptions that you forget.

Keep zero debt as long as possible.

Loans reduce your ability to save and invest.

Benefits of Investing via MFD with CFP Support
You get advice suited to your income level.

Fund selection is personalised.

Help is given for SIP starting, changes, withdrawals.

They help with taxes and switching too.

Your long-term success becomes their priority.

Don’t Fall for High Returns Promises
If someone offers 20% return, it’s risky.

Stable 10–12% return over years is good.

Compound growth needs patience.

Shortcuts often lead to losses.

Stay steady and grow slowly but surely.

Think Long Term, Act Monthly
Rs. 2,000 monthly SIP grows big in few years.

You will learn patience through SIP investing.

Don’t stop SIPs if market falls.

Use market fall as chance to grow faster.

Keep SIPs running without panic.

Protect Yourself from Tax Shocks Later
Equity mutual funds give tax benefit on long term.

LTCG above Rs. 1.25 lakh is taxed at 12.5%.

STCG is taxed at 20%.

For debt funds, all gains are taxed as per your slab.

So plan redemption properly.

Financial Independence Should Be Your Goal
Try to reach a stage where money works for you.

That needs slow and steady investing.

Once you reach Rs. 5 lakh corpus, add more SIPs.

With every hike, increase SIP by Rs. 500 to Rs. 1,000.

Build wealth step by step.

Stay Consistent, Not Perfect
You may skip saving in one month. That’s okay.

Don’t stop. Resume next month.

Track your progress, not your mistakes.

Stay focused on long term.

Small savings add up to big money later.

Finally
You have made a wonderful beginning.

Saving at Rs. 25,000 salary shows maturity.

With consistency, Rs. 7,500 monthly savings will create big wealth.

Stick to professionally managed mutual funds.

Don’t try shortcuts or risky bets.

Get support from a trusted Certified Financial Planner.

Learn, earn, save, invest, and grow at your own pace.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

..Read more

Ramalingam

Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 02, 2025

Asked by Anonymous - May 28, 2025Hindi
Money
Dear Sir, My name is Arun, am an NRI age 46, and due to current situation my contract is not renewing by end of this year November. I have 1 CR bank deposit and approx 20 Lakhs in MF as savings and no liability in India and am planning to be with family for a while with the current savings.. My monthly expense estimate approx 50000-60000 Rs. Kindly advise me how to get this amount for life time and some earning or investment with this savings
Ans: You have taken good care of your savings. That is appreciated.

Let us now work towards building a plan that can support your lifelong expenses and growth.

I will guide you with a detailed 360-degree plan based on your current financial reality.

Let us go step by step.

Understanding Your Financial Position
You are 46 years old and an NRI planning to return to India this year.

You hold Rs. 1 crore in bank deposits. That is a good safety buffer.

You also have Rs. 20 lakhs in mutual funds. This adds growth potential.

Your monthly family expense is between Rs. 50,000 and Rs. 60,000.

You have no liabilities. That gives you freedom and control.

Your job contract is not renewing. So, active income will stop soon.

You want to generate income from your savings for a lifetime.

This is a reasonable expectation. With a thoughtful strategy, it is possible.

Key Financial Goals to Cover
Ensure monthly cash flow of at least Rs. 60,000 for lifetime.

Avoid touching your principal for the first few years.

Protect your corpus from inflation and emergencies.

Grow part of your savings to build long-term capital.

Keep investments tax-efficient under new mutual fund tax rules.

Maintain flexibility and liquidity in case of future needs.

We now structure your money accordingly.

Review of Current Assets and Deployment Plan
Let us divide your Rs. 1.20 crore corpus across three financial buckets.

This makes your money stable, growing, and accessible.

Bucket 1: Emergency + Regular Income
(Recommended: Rs. 40 lakhs)

This will cover your expenses for next 6-7 years.

Keep 6-12 months' expenses in a liquid or ultra-short-term fund.

Rest can be parked in conservative hybrid funds with monthly SWP.

Use Systematic Withdrawal Plan (SWP) to get Rs. 60,000 per month.

Avoid bank FD for income. FD interest is fully taxable. Mutual fund SWP is more tax-friendly.

Under new rules, equity mutual fund LTCG above Rs. 1.25 lakhs is taxed at 12.5%.

STCG on equity mutual funds is taxed at 20%. So plan redemptions carefully.

Debt mutual funds follow your income tax slab for both LTCG and STCG.

Choose conservative hybrid or balanced advantage category for this bucket.

Monthly SWP from regular funds through a Certified Financial Planner will be more stable.

Avoid direct plans. Regular plans through MFDs linked to CFPs offer handholding, tracking, and customisation.

Bucket 2: Medium-Term Growth
(Recommended: Rs. 40 lakhs)

Invest in actively managed mutual funds.

Mix of multi-cap, flexi-cap, and mid-cap categories preferred.

No need to invest in index funds. Index funds have limitations.

Index funds do not have downside protection or stock selection ability.

Actively managed funds beat benchmarks in most years with proper selection.

Choose funds with style diversification — value, quality, and momentum.

This bucket will grow your capital for next 10-12 years.

Withdraw from this only after Bucket 1 is used up.

Rebalance once every two years based on performance and inflation.

Stay invested in regular plans. Regular plans give access to a Certified Financial Planner.

CFP helps to monitor, switch funds if needed, and maintain long-term discipline.

You do not have to track market every month. Your planner will do that.

Bucket 3: Long-Term Growth and Legacy
(Recommended: Rs. 40 lakhs)

Invest this part for 15+ years horizon.

Include aggressive hybrid, focused equity, and selected mid-cap funds.

This part will support future large expenses or healthcare needs.

Also can be used to support children’s future or create legacy for family.

Keep tax-efficient and flexible. Avoid insurance-cum-investment products.

ULIPs, LIC investment plans, and guaranteed returns schemes are not suitable.

If you ever hold such plans, surrender and reinvest in mutual funds.

This part should not be touched till at least age 65.

Review and adjust based on inflation and family needs every 3 years.

Income Strategy from the Corpus
Your need is Rs. 60,000 monthly i.e. around Rs. 7.2 lakhs yearly.

You can withdraw this through monthly SWP from Bucket 1.

Assume Bucket 1 lasts for 6-7 years comfortably.

After that, switch to Bucket 2 for another 8-10 years.

Then use Bucket 3 if required, after 65.

Your capital will keep growing in Buckets 2 and 3.

So your total corpus can stay above Rs. 1 crore for long years.

Inflation impact will be handled through fund growth.

Tax will be minimum due to SWP method and holding periods.

You can also consider senior citizen schemes post age 60, if interest improves.

Why Not Index Funds or Direct Plans?
Index funds copy market. No expert is managing the selection.

In falling markets, they fall without protection.

Direct plans save some expense ratio. But they do not offer advice.

You must do research, tracking, and rebalancing yourself.

Many people lose money due to wrong timing in direct plans.

Regular plans give you support of a Certified Financial Planner.

CFP watches your money and gives timely suggestions.

In retirement phase, this personalised help is very important.

Avoid Real Estate or Annuity Investments
Real estate is not liquid. Maintenance and resale are not easy.

You already have a land worth Rs. 18 lakhs. That is sufficient exposure.

Do not buy house for investment unless for staying purpose.

Annuities give fixed returns. But they lack growth and are not tax efficient.

Once you invest in annuity, you cannot change the decision later.

Your present corpus can serve you better through mutual fund SWPs.

Other Considerations
Take a personal health insurance outside your company coverage.

Job-based medical stops when you leave the job.

A Rs. 10-15 lakh family floater is suggested at your age.

You already have no loans. That’s a great advantage.

Your monthly spending is moderate. It can be comfortably funded from your savings.

Avoid taking money from Bucket 2 and 3 for small expenses.

Do not mix emergency funds with long-term funds.

Create a separate file or account for each bucket.

Keep nomination and family access ready for all investments.

Finally
Your savings of Rs. 1.20 crore can take care of your monthly needs.

With proper structure, you can manage both income and growth.

Keep your focus on asset allocation and disciplined withdrawal.

Stay invested only through regular plans, supported by Certified Financial Planner.

Avoid direct plans, index funds, or fixed-return products.

Review your plan every 2 years or on any big life event.

With this strategy, you can enjoy peace, flexibility, and financial independence.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..Read more

Latest Questions
Sunil

Sunil Lala  |207 Answers  |Ask -

Financial Planner - Answered on Jul 15, 2025

Asked by Anonymous - Jul 12, 2025Hindi
Money
Hi, Me and My wife earn earn 2 lacs per month after taxes (Both Salaried). Im 34 and she is 31. We have a 1 Year old son. Current investments are as follows. MF: 2 Lacs (Sip 25k per month. PPFAS: 10K, ICICI Prud Large Cap Direct: 3k, Motilal Oswal midcap: 2k, LIC MF Gold ETF: 5K, Nippon inida Small cap: 5k) FD: 4 Lacs EPF: 7 Lacs PPF: 1.5 LPA (Started in april this year 12500 per month) Expenses ( 50 k per month) Liabilities. Home loan: 40 months remaining 35k EMI. We wish to achieve following goals. 1. 60Lacs in next 16 years for childs education. 2. 60Lacs in next 10 years for new home. 3. 2Cr in next 20 years for retirement. Please suggest suitable plan and investment change if any to achieve above goals.
Ans: Hello, to achieve 1.2Cr in the next 10 years, you need to have SIPs worth 50k today which will yield a CAGR of 15% to achieve the target. Another 20k SIP to achieve the 2Cr retirement target, which totals to 70k SIPs starting today. Your financials look very stable with the income you'll have, but the investment decisions w.r.t the mutual funds, the PPF and EPF are wrong since they will not yield optimum returns in the long run. As far as tax planning and safety is concerned, there are other better avenues to put your money which will be more effecient than your current decisions. Also, as far as your mutual funds are concerned, these look very "safe" and selection looks a lot based on past returns.
I would love to help you and have a detailed conversation with you for better, apt advice for you; please visit the website slwealthsolutions.com if you are interested :)

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Nayagam P

Nayagam P P  |8836 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Janak

Janak Patel  |60 Answers  |Ask -

MF, PF Expert - Answered on Jul 15, 2025

Asked by Anonymous - Jul 12, 2025Hindi
Money
Hi Sir/Madam, I'm 35 yrs old married man, no children, Working as Qa analyst from past 13yrs. I'm earning 1-Lack per month. I have no emis and no good savings. But rent is 25k per month I may go for house loan maybe 20-Lakhs to support my parents house But I'm worried about my future due to working in IT as QA and uncertainty about job security Can you please suggest me how can I save money and pension plan Any suggestions will be really helpful
Ans: Hi,

Based on the information provided, its difficult to provide specific responses. Even then, let me try to guide you with some pointers.

Savings -
As I understand your income and expenses do not leave any saving at this time. With 1 lakh income and 25K rent, you have 75k for other expenses. So first start by looking at these, create a budget for various expenses and see if there is any potential to make adjustments and arrive at saving a few thousands. Even a saving of 2k every month has a potential to build 10 lakhs in 15 years. So no amount is too small. Start small and keep looking for ways to save more with time.
Rent is also something to think about. Is there anyways to reduce it, a smaller house or another area or something that can work for you. When you consider new place keep in mind the over all expense you will incur not just rent, e.g. travel expenses. Overall there should be a benefit in terms of real savings in hand every month.

Loan -
Going for a loan to support your parents house will put additional burden on your budget. Do they live in the same city, if so is there an option to live with them. This can help service EMI with the rent saved.

Empower your spouse -
Another option to consider is your spouse's potential to contribute to the household income. You can encourage her towards something that she can start either a job or something on her own, may be tuitions or any other interests, anything that can generate a little more income to support/increase your savings.

Career -
As for your own future in IT, I can understand it may look challenging. Look for additional skills you can develop on the job. Many organizations have career growth options with trainings and new areas of focus where they would prefer an existing employee they can train and utilize. So look within your organization and even outside. Developing new skills can be 1 way to stay relevant in IT. Keep yourself updated with new tools and techniques to get an edge over others.
Also consider any other areas of interest/expertise you have or can develop for an alternate career. I have been in the IT industry too for a long time. Somewhere in the middle of my IT career I developed interest towards finance and specifically personal finance area and pursued it with passion and eventually I started it as a profession/business.
So look for your areas of interest.

Thanks & Regards
Janak Patel
Certified Financial Planner.

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Ramalingam

Ramalingam Kalirajan  |9737 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 15, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Money
Dear Sir/Madam, First let me list down our holdings as of July 15, 2025. Self (Age 39) - Net Salary - 1.53 L Per Month; Variable Pay - 1 L Per Annum; Term Life Ins - 50 L; Health Ins - 5 L (Individual plan. Additional health cover provided by employer as well); 2 Houses - worth rs.50 L each (1 is yielding a rent of 8k per month); 1 Home Loan - EMI 20K (12 L Outstanding - Borrowed 26 L in Oct 2021 and reduced 14 L thru regular part payments); 1 Vacant plot - worth rs.7 L; Agri Paddy Field - ~3 L; NPS - 7.5 L; EPF - 8.5 L; NCD - 4 L (mature by 2030); Direct Stocks - 2.5 L; Mutual Funds - 19 L (all DIY - Direct Growth); MF Portfolio: (Axis Tax Saver 5K SIP since Aug 2016; Nippon India Index BSE Sensex Plan 1K SIP since May 2021; Edelweiss NIFTY LARGE MID CAP 250 INDEX Adhoc Lumpsum; TATA Digital India Fund: Tata Nifty India Tourism Index; Motilal Oswal Nifty India Defence Index: Mirae Asset Tax Saver Fund (for Wife)); Wife (age 31): Net Salary - 95 K Per Month; Variable Pay - 1.5 L Per Annum; 1 Commercial Go-down - Worth 1 Crore (Yielding 25 K rent Per Month); Gold - 300 Grams; NPS - 3 L; EPF - 3 L; Health Ins - 5 L (Individual plan. Additional health cover provided by employer as well); Our fathers are no more and our mothers are health insured; 1 kid (Boy) - 4 Yrs old (at Kinder-garden); Emergency Fund - 20 L. Question: I want to raise my son as an Archery sports person and provide him decent education as well (in Chennai metro city). My brother is less paid and he has two boy kids (5 yrs & 3 Yrs) and I want to support his kids' education as well. (living in semi-urban); Our monthly net income is 2.81 L (salaries, rents). Kindly formulate a plan for our future (wealth building, retirement, children - education, sports). Thanks a lot!
Ans: You have done many things right already. You are earning well, living within your means, and thinking of your family. You have real assets, a good emergency fund, and multiple investments. The intent to raise your son in sports and support your brother’s kids is admirable. Let us go step by step.

? Income and Cash Flow Assessment

– Your total family income is Rs.2.81 lakhs per month.
– This includes salaries and rental income.
– You have a home loan EMI of Rs.20000.
– You also get Rs.25000 rent from commercial property.
– The outflow seems manageable with this income.

You already keep aside Rs.20 lakhs as emergency fund.
This is well thought out. Please continue to keep it updated with inflation.
Ensure this is in a liquid mutual fund or sweep-in FD for easy access.

Now let’s move into goal planning and wealth building.

? Portfolio Overview and Observations

– You have Rs.19 lakhs in mutual funds.
– Most are in direct growth plans.
– You also hold index funds and thematic funds.
– NPS and EPF together have over Rs.19 lakhs.
– You have Rs.2.5 lakhs in stocks.
– You hold Rs.4 lakhs in NCDs.
– You own two houses and a commercial property.
– Your wife owns gold of 300 grams.

Overall, your asset mix is wide and strong.
But few gaps exist. Some assets may underperform long term.
We need to align all assets towards your family’s life goals.

? Disadvantages of Index Funds and Direct Mutual Funds

You hold multiple index funds. Also, all mutual funds are direct plans.

Problems with index funds:

– They simply copy market index.
– No active management.
– No outperformance during bull phases.
– Fall fully during bear phases.
– Cannot protect downside.
– Do not beat inflation well in the long run.

Problems with direct mutual funds:

– Lower cost, but no guidance or review.
– No support in selecting suitable funds.
– Risk of overlapping and over-diversification.
– Emotional decisions can hurt portfolio.
– No asset rebalancing or goal linking.
– Hard to track or monitor performance deeply.

You will benefit more from regular mutual fund plans
through a Certified Financial Planner.
They ensure portfolio reviews and better fund selection.
They help you match investments with real goals.

The service value is higher than the slightly higher cost.

? Plan for Your Son’s Sports and Education Journey

This is a meaningful and high-impact goal.

– Archery is a disciplined sport.
– Needs equipment, coaching, travel, and time.
– Start planning financially right away.

Do this:

– Estimate yearly coaching and sports costs.
– Allocate a SIP from now only for sports expenses.
– Use equity mutual funds with long-term view.
– Set aside Rs.10000 monthly towards this.
– Keep this portfolio separate from other goals.

Also, for his academic education:

– Set a separate goal-based investment for school and college.
– Education in Chennai metro will be costly.
– Keep Rs.10000 per month as SIP for education.
– Choose 2-3 well-managed diversified equity mutual funds.
– Keep reviewing yearly and increase SIP over time.

This dual-approach ensures your son gets exposure to both
sports and studies without any funding stress.

? Planning Support for Brother’s Children

This shows your long-term vision and care for your extended family.
They stay in semi-urban area, so education costs may be moderate.
Still, cost will increase over time.

– You can help them through a dedicated fund.
– Start SIP of Rs.5000 per month for this purpose.
– Invest in equity mutual funds with 10-15 year view.
– Withdraw only for their college or higher education.
– Let the fund grow untouched till then.

Keep this separate from your own child’s funds.
It avoids confusion and keeps planning clear.

Also, educate your brother about savings and child education plans.
Guide him to start small SIPs or open Sukanya or PPF accounts.

? Retirement Planning – Your and Your Wife’s Future

You are 39. Your wife is 31. You both have 20-25 years to build retirement wealth.
This time is very important.

Currently you have:

– Rs.7.5 lakhs in NPS
– Rs.8.5 lakhs in EPF
– Rs.3 lakhs NPS (wife)
– Rs.3 lakhs EPF (wife)

These are good. But not enough alone.

What to do:

– Start dedicated SIP for retirement.
– Invest Rs.15000 per month from your income.
– Your wife can invest Rs.10000 monthly.
– Use equity-oriented mutual funds.
– Choose regular plans with CFP-backed guidance.
– Review once every year.

Avoid depending on real estate or gold for retirement.
They are not liquid or tax efficient during old age.

Mutual fund retirement corpus can be withdrawn in parts.
Tax on equity funds is also predictable.

NPS is locked till 60. Use it as support only.
Don’t rely fully on it.

Build a retirement plan that keeps you comfortable
even if rental income slows down or stops later.

? Review of Existing Real Assets and Loans

You have:

– Two houses (Rs.50 lakhs each)
– One commercial go-down (Rs.1 crore)
– One vacant plot (Rs.7 lakhs)
– Agri paddy field (Rs.3 lakhs)

Out of this, only one house and go-down are yielding rent.
Second house and vacant land are not productive now.
Also, gold of 300 grams is passive holding.

Suggestions:

– Don’t increase real estate further.
– Avoid buying new plots or homes.
– Real estate gives low returns over time.
– High cost, low liquidity, and poor taxation.
– Maintenance and legal issues increase in old age.

Instead:

– Focus on mutual funds for growth.
– Mutual funds are liquid, diversified, and efficient.
– You can withdraw partially for goals.

Your current EMI of Rs.20000 is fine.
Loan balance is only Rs.12 lakhs.
Try to close it in 3 years.
Use bonuses or surplus rent for closure.

? What You Should Do with Gold and Stocks

You hold 300 grams gold.
This is fine as safety asset.

Do not invest more in gold going forward.
Returns are low and erratic.
Better to use mutual funds or EPF/NPS.

You also have Rs.2.5 lakhs in direct stocks.
Ensure this is in quality companies.
Don’t increase stock investing unless you have expertise.

Stocks need time and knowledge.
Mutual funds offer better risk handling.
Focus more on mutual fund SIPs for all goals.

? Insurance Coverage Review

You have:

– Rs.50 lakhs term insurance (self)
– Rs.5 lakhs health insurance (each)
– Additional corporate health cover

Suggestions:

– Increase term insurance to Rs.1 crore minimum.
– For your wife, take Rs.50 lakhs term cover.
– This protects your son if anything happens.
– Corporate health insurance is not permanent.
– Keep separate retail health plans active always.

Also, include critical illness riders if possible.
Medical inflation is very high.

? Estate Planning – Very Important for Families Like Yours

Since both your fathers are no more,
You understand the need for clarity in future.

– Prepare a Will for both husband and wife.
– Mention all assets clearly.
– Assign guardianship for your son.
– Include your intention to support your nephews.
– This avoids confusion and legal issues later.

Also, keep nominee details updated in:

– Mutual funds
– NPS and EPF
– Bank accounts
– Insurance policies

This brings peace of mind and security.

? Ideal Monthly Budget Structure from Your Current Income

You earn Rs.2.81 lakhs monthly.
You can follow this ideal budget model:

– 30% for all household expenses (Rs.84000)
– 10% for EMI and loans (Rs.20000)
– 10% for insurance premiums (Rs.20000)
– 40% for investments and goals (Rs.1.12 lakhs)
– 10% for lifestyle, travel or miscellaneous (Rs.28000)

This way you enjoy life, stay protected, and build wealth peacefully.

? How to Monitor Your Plan Every Year

Each year, do these 5 reviews:

– Check if SIPs are linked to your goals
– Increase SIP amounts as income grows
– Review mutual fund performance
– Track actual cost of sports and education
– Ensure insurance and emergency funds are adequate

A Certified Financial Planner can do this yearly review.
This keeps your plan aligned and stress-free.

? Finally

You are financially strong today.
You have a good mix of income, assets, and savings.
You care about your family and extended family.
You are future-focused and responsible.

Please take the next steps now:

– Shift your direct mutual funds to regular plans through a CFP
– Exit index funds and thematic funds gradually
– Stick to diversified actively managed equity funds
– Allocate funds to son’s sports and education
– Start retirement SIPs immediately
– Review term and health covers
– Complete your Wills this year
– Avoid more real estate or gold investments

With this 360-degree plan, you can reach your goals peacefully.
You can raise your son with values, health, education, and talent.
And also uplift your brother’s kids quietly and strongly.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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Nayagam P

Nayagam P P  |8836 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Asked by Anonymous - Jul 15, 2025Hindi
Career
Sir please tell best colleges for bba /b.com with specialisation in fintech /business analytics within india
Ans: Symbiosis Skills and Professional University, Kiwale, Pune offers BBA FinTech. Chandigarh University, Mohali offers BBA Hons FinTech in partnership with KPMG. Doon Business School, Dehradun offers BBA FinTech. Anil Surendra Modi School of Commerce (NMIMS Mumbai) offers BBA Analytics. MIT ADT University, Pune offers BBA FinTech. Alliance University, Bengaluru offers BBA FinTech Hons. CMR University, Bengaluru offers BBA FinTech. Jain University, Bengaluru offers B.Com Business Analytics. Presidency University, Pune offers B.Com Business Analytics. Loyola College, Chennai offers B.Com Business Analytics. Kristu Jayanti College, Bengaluru offers B.Com Business Analytics. Amity University, Noida offers BBA FinTech and B.Com Analytics. IBS Hyderabad offers BBA Analytics with global credit transfer. NMIMS Shirpur offers BBA Analytics (online and campus). Symbiosis Centre for Information Technology (Pune) offers BBA Analytics (via SET).

Eligibility across most institutions is a minimum of 50% aggregate in Class 12 (with Commerce or Science stream), with admission based on merit, CUET-UG, institute-level tests (SET, AIMA UGAT), or direct selection. All the recommended colleges have NAAC A++/A+ or relevant accreditations, offer curricula combined with specialized FinTech or analytics labs, industry tie-ups, experienced faculty, and active placement cells that consistently achieve 75–90% placements. These programs provide up-to-date modules on digital payments, blockchain, big-data analytics, business intelligence, and AI applications in financial services, and include extensive capstone projects, internships, and professional certifications to bridge the industry-academia gap. All the BEST for Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |8836 Answers  |Ask -

Career Counsellor - Answered on Jul 15, 2025

Career
Sir i got selected into scaler . Had a campus tour and hostel tour evrything was fine . I am intrested in CSE . Can you please tell whether joining scaler is safe or not . Are theese new age colleges worth it . Keeping high fees aside are they good in other aspects ?
Ans: Shashank, Scaler’s four-year School of Technology in Bangalore delivers a rigorous CSE curriculum endorsed by the European Credit Transfer and Accumulation System (ECTS) and backed by InterviewBit’s industry-vetted syllabus covering data structures, algorithms, system design and cloud computing through 47 specialized on-campus labs. Faculty comprises seasoned engineers from Google, Amazon and Microsoft who offer live interactive sessions, one-on-one mentorship and TA-led practice to reinforce learning. Accreditation via ECTS affords international credit transfer, but lack of UGC/AICTE recognition means learners must concurrently pursue a formal degree to access government exams and research pathways. The dedicated Careers team conducts mandatory mock interviews and supports placements for six months post-program, facilitating connections with over 900 partner employers and achieving a 93.5% placement rate with 39 LPA top-quartile average salaries, according to KPMG’s audited report. Campus and hostel infrastructure in Electronic City provide a modern tech environment, though high fees and absence of a standalone degree credential can limit eligibility for certain local roles. Internships are integrated into semesters, yet the intensive pace demands strong time management and self-motivation to excel.

Recommendation: Scaler’s School of Technology is a safe and forward-looking choice if you value cutting-edge CS education, global accreditation and proactive placement support; ensure you secure a parallel accredited degree to fulfil regulatory eligibility and balance the investment by leveraging internships, mentorship and rigorous project work for maximum ROI. All the BEST for Admission & a Prosperous Future!

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Sunil

Sunil Lala  |207 Answers  |Ask -

Financial Planner - Answered on Jul 15, 2025

Money
I am 33 now earning 1.05L permonh in hand (also 1.5L Variable pay every year), have a car loan left for another 4 years of 11300 per month.. no assets as of yet. no other EMIs too. My monthly expenses are max of 40K. I do pay LICs above 1L per year (strategically to get money paid for my kids education(50 - 60% burden cleared)..).. I do have a 6 months of savings in case of any issues with job. I am not interested in getting a home or purchasing one. But i am interested to buy a land of at least 10 acers and in future use for farming and animal husbandry( transition from corporate to farmer by the age of 50 years).. i am left with 17 years now for the transition.. how to execute the plan financially (10acers land around 1.2 Cr plus another 10 lacks for improvement and 20L for a small home in the land which can be further improved).I am also planning kids this year..
Ans: Hi Yashaswi, firstly I believe you are parking money in LICs above 1L per year which is ineffecient use of money, you can have better investments which will yield better returns for your kids' education. Secondly, about your plans for the land, there has to be a goal based investment plan in place to achieve the target. You will have to back calculate to come to an investment amount that you can do per month after factoring in inflation and expected returns from the asset. Visit the website www.slwealthsolutions.com and let me know if you would like to have a detailed conversation around this :)

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